Electronic Data Processing Share Discussion Threads

[divina] 30/5/2003 21:15

how many shares will they buy back?

Does look cheap!

[hugepants] 30/5/2003 08:13

eps of 1.95p pre-exceptionals for the 6 months.

And 9.3M of freeholds on the balance sheet never mind the cash pile. Far too cheap, I just bought another 10K. dyor.

[feedthegoat] 23/5/2003 11:34

Met the fd,impressive for small co. but doesn't seem type to have stacks of dosh to buy shares.
Maybe thats why they granted him 50000 options.First ever options granted by the co. i think.

[pommey1] 13/5/2003 11:48

Climbing yes but where is the news. I have checked the website and there isn,t much information about new products or new sales. Balance sheet and divi still good but they need to start making profits. The Herald statement will provide some confidence but this sector is generally week.

As I stated before, I would like to see some of the other directors buying in. MD and Chairman have substantial holdings but FD doesn't seem to hold nor does other directors although there is a small share option available.

Results should be soon. My opinion only.DYOR

[divina] 07/5/2003 08:19

Up again Azalea :@)

[feedthegoat] 07/5/2003 00:10

EDP only have to return to profit(which i think they will)for them to look cheap.The asset backing and divi are worth the risk alone.Throw in large dir holdings,share buybacks etc.and its one way IMHO.
A slow but sure rise i think

[bankside investments] 05/5/2003 20:20

RNS Number:5600K
Electronic Data Processing PLC
30 April 2003


ELECTRONIC DATA PROCESSING PLC
Holding in Company

On 29 April 2003 Electronic Data Processing PLC ("the Company") was notified
that Herald Investment Trust plc ("Herald") purchased 100,000 ordinary shares in
the Company on 28 April 2003. As a result, Herald now holds 1,981,000 ordinary
shares in the Company, amounting to 8.04 per cent. of the issued share capital.


This information is provided by RNS
The company news service from the London Stock Exchange
END

[azalea] 03/5/2003 17:11

Divina
You may well be correct. However, I find it difficult to believe that such large jump in price, albeit prompted by corresponding 'buys' is behind your theory. I do not hold, but have tracked them for years. EDP results and prospects (IC - view) were, as I read them, not such that they would give cause for such a rise. That said, I cannot venture an alternative reason myself. Interesting nonetheless.

[divina] 02/5/2003 22:57

You can always see that Techies are back on the menu
when this one starts moving up

[pommey1] 20/12/2002 15:36

Just as I thought. Increased Losses. Nice how they are hidden under R&D. Still more news of R&D of 1.8 mill. By my calculation they have spent 20 mill on R&D in the last 6 years and only just delivered new product to their first clients.

What happened to Quantum VS? This was the product for the future. No mention this time.

Cash and property still look good. About time that they converted it into something more profitable.

Just my opinion of course.

DYOR

[divina] 20/12/2002 10:11

Should rise during next year in a broad tech rally IMO
figs dont set the market alight But trading 40p with assets at 56p
so low risk IMO

[pommey1] 09/12/2002 14:14

Good news on the property front. I would like to see some growth in the business and some inproved sales. If a company is committing so much to R&D then they must have some new products and customer prospects as a result at some stage.

In my opinion this company has promised so much for so long, but has yet to deliver anything of substance. Even acquisitions do not seem to have had much effect on the growth of the business.

I hold at more than twice the current value and would like to see some positive news and the other directors buying into the business. Not all board directors hold shares , although there is a small option scheme available.

I am also concerned at the amount of legal costs incurred for a company with a T/o of less than £10 mill. I seem to recall a couple of court cases in the past- anyone know how they went?

The results will be out soon and I would guess that we will have a better idea of what has been achieved in the last 6 months thereafter

As always IMO and DYOR

[feedthegoat] 05/12/2002 14:41

director told me that many of the properties had not been revalued for some time
ie.this is almost a property company,the business ank cash are for free.

[mayfly] 04/12/2002 17:18

This from Citywire back in July is slightly more up to date than the info contained in the header article.

Obviously, I've got a few of these and so the usual caveats apply!? Lets wait and see whether the results herald a new dawn?

M

09:27 Thr 4 July 2002
City dealers buy EDP, says Jemma George
Some City dealers have bought shares in Electronic Data Processing for their own personal account because the software group trades on a big discount to net assets and they hope for a recovery in its core business, reports Jemma George.



The basic maths are assets of 62p plays a share price of 36.5p. Cash in the bank represents about 24p per share and freehold property accounts for most of the rest of the assets.

Electronic Data Processing is fighting the forces of lower activity levels across the technology sector but we think that a prudent management team and strong asset base still offer a compelling, if risky, case for investment.

The company has cash in the bank and freehold property worth together over £15 million versus a market capitalisation of around £8.5 million. The directors own just over 21% of the company - a good sign to see them with a significant stake, albeit in a tiny company.

For the six months to 31 March EDP (EDP), which operates as a wholesale distribution software and e-business specialist largely for the builders and merchants sector, recorded a reduced pre-tax loss of £200,000 against £280,000 previously, on turnover of £4.3 million.

The loss is before exceptionals such as goodwill and a £150,000 share buyback, but after £950,000 of expenditure on product research and development.

Recurring revenues represented 66% of total revenues, up from 60% last time, but there was a downturn in new business due to the softer market conditions.

Operating cash flow remained positive and net cash in the bank of £5.8 million is only just down on the £6.1 million available at the end of September, thereby demonstrating self-funding investments, efficient operations and prudent cash management.

The company intends to use its war chest to make further acquisitions of smaller businesses that are finding the going too tough. Certainly they need to do something to narrow the discount of assets.

At the time of interim figures in May this year, the group said: 'Market conditions remain extremely tough and there are no signs of any significant short-term improvement in activity levels.

With the strength of our balance sheet, net assets in excess of £15 million, we should ride out the current market weakness and will remain well placed to take advantage of improvements in trading conditions as they occur.'

Despite the troubled markets and uncertain outlook, the board kept its promise and enhanced the dividend by 6% to 0.706p per share against 0.667p per share.

The shares are therefore underpinned not so much by the prospect of a near-term recovery but by assets and a prudent and trusted management team.

You've always got to be aware that cash is being spent by companies so that you cannot count on it always to be there. We haven't looked at the freehold property so we do not know whether the valuation of it in the books reflects its realisable value if sold.

The companys £8.4 million market-cap is too small for many City funds but not for private investors looking for a recovery play that is also underpinned by strong assets.

The biggest risk is a further deterioration in trading, which might lead to a warning on the full year numbers. Again, the assets help to offset excessive damage in such circumstances.

It takes a bold investor to commit cash to anything with a technology angle in the current market, let alone a company the size of EDP, but a strong balance sheet, valuable assets, controlled cash flows and prudent management team offer four solid pillars for the future. EDP remains a buy but given the size of the company and the lack of liquidity in the shares, investors should go easy.

[feedthegoat] 04/12/2002 14:09

Had lunch with ceo 18 m ago .They are v .cautious Yorkshireman.
You will never lose your shirt on this one but you will always be told exactly how it is.
I agree a loss is possible but it will be negligible.
Price moving up anyway

[divina] 04/12/2002 13:20

Its a wonder they havnt made an aquisition with there cash with companies at near bottom valuations.

[pommey1] 04/12/2002 09:21

They will be declaring a loss again in my opinion! There income is from recurring revenues and I guess that there have been few new sales. DYOR

[feedthegoat] 02/12/2002 13:30

if they can declare a profit then i think they will advance quickly
results should be soon

[divina] 29/11/2002 13:35

NIce to see this one start moving up

Still undervalued with cash on board

anyone have an opinion

[calibra1] 16/9/2002 17:06

On the slide today

[feedthegoat] 08/8/2002 10:58

Moving up nicely now on little volume
MM,s short of stock?

[rangers99] 21/6/2002 02:27

Looks like yet another, ahem.... "long-term" investment for me then.

[stewjames] 21/6/2002 00:05

Yep! :-)

No hurry though.

[rangers99] 20/6/2002 11:49

Well you must be getting even more interested now.